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Investing.com -- European Central Bank Executive Board member Isabel Schnabel believes the ECB should keep borrowing costs at current levels as inflation risks are tilted to the upside.
In an interview published Tuesday, Schnabel told Reuters that Europe’s economy is performing well despite trade disruptions from the United States.
However, she warned that price increases might exceed projections in the coming years.
"I believe that we may be already mildly accommodative and therefore I do not see a reason for a further rate cut in the current situation," Schnabel told Reuters.
The German official also expressed concerns about the impact of tariffs on inflation, adding: "I continue to believe that tariffs are on net inflationary."
Her comments suggest resistance to further monetary easing despite market expectations for additional rate cuts from the ECB.
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